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    The dynamic business strategy at the age   fairfax media - rincon The dynamic business strategy at the age fairfax media - rincon Presentation Transcript

    • The dynamic business strategy at The AGEFelipe RinconCRM AnalystPh (+61) 3 8667 2731frincon@theage.com.auwww.theage.com.au
    • Purpose• To demonstrate the flexibility of MaaX in the fast changing media environment at The Age.• To present the diverse scenarios where MaaX has added value, including reporting, data management, segmentation and forecasting.• To present how MaaX has been able to support multi- functional CRM areas including acquisition, retention and customer service. 2
    • Newspaper audience• Global newspaper print sales have experienced a decline in recent years but those publishers that embraced new platforms have actually grown their audience.• Fairfax brands and audience reach has grown strongly.
    • Business ChallengeMore than 55% of AGE circulation is driven through home-delivered copies. Thus, the company is committed to asustainable circulation strategy that continues to sustain avaluable engaged readership across platforms. – Price effective: Right price to the right audience • Cover price reviews, subscriptions prices – Optimized circulation footprint • Routes, channels and markets analysis • Discontinuing of heavily discounted customers acquisition efforts 4
    • Working scenarios with MaaX at The AGE Customers Dynamic DataSmartREPORTs Profiling and Forecasting LTV Renewal Management Segmentation segmentation June 2010 Feb 2011 2011 Currently Next Challenge 5
    • Time effectiveness SmartREPORTS One-Step update process 3 Critical Success Factors Consistency Top quality development“SmartReports increased the efficiency of the processby 400% by reducing the update processing timefrom 3 - 3.5 days to just 4 hours a week”F.Rincon CRM Analyst 6
    • Weekly Management Reporting package Weekly reporting management package includes 8 smartREPORTS, on top of 1 daily report and 2 monthly: - Subscribers number - Start and Stop subscriptions - Campaign Tracking - Renewal Rates - Potential customers expire - Cancelation Reasons - Revenue - Gross Yield - Daily holiday suspensions - Attrition 7
    • Subscriptions Renewal Application NEED DELIVERABLE APPLICATION RESULTMonitor the performance of Renewal cycle report able to “Based on the Renewaleach of the renewal display conversion rates per Cycle Report, we havecommunications interaction. changed the timing of letters and telemarketingHow renewal Channel effectiveness and we are monitoring thecommunications are driving impact of those changespeople to respond through that report. It will also become vitally important when we add email to our renewal communications mix in the next few months. It will help us calibrate the comms and get the best result.” B.Haywood – Retention & Loyalty Manager 8
    • Renewal Cycle ReportRENEWAL CYCLE REPORT FY12 Updated 23/02/2012 Nov-11 Dec-11 Jan-12 Renewals Status 1st-Letter 2nd-Letter3rd-Letter TOTAL 1st-Letter 2nd-Letter 3rd-Letter TOTAL 1st-Letter 2nd-Letter 3rd-Letter TOTAL Renewal Letters Sent 6,326 4,693 2,867 13,886 7,448 4,634 2,718 14,800 10,199 9,363 4,331 23,893 Renewals Response 1,852 1,772 201 3,825 2,087 1,387 172 3,646 1,486 3,869 356 5,711 Renewals Didnt Response 4,474 2,921 2,666 10,061 5,361 3,247 2,546 11,154 8,713 5,494 3,975 18,182 Conversion Rate 29.3% 37.8% 7.0% 27.5% 28.0% 29.9% 6.3% 24.6% 14.6% 41.3% 8.2% 23.9% Nov-11 Dec-11 Jan-12 Renewals Response Source 1st-Letter 2nd-Letter3rd-Letter TOTAL 1st-Letter 2nd-Letter 3rd-Letter TOTAL 1st-Letter 2nd-Letter 3rd-Letter TOTAL Sforce* 373 223 10 606 251 130 6 387 154 461 17 632 Internet 304 197 25 526 360 194 12 566 313 576 37 926 Data Resp 456 323 23 802 566 230 33 829 504 1,011 82 1,597 Csr 525 833 122 1,480 681 682 101 1,464 378 1,452 186 2,016 Other 194 196 21 411 229 151 20 400 137 369 34 540 Total 1,852 1,772 201 3,825 2,087 1,387 172 3,646 1,486 3,869 356 5,711 9
    • Customer Service andComplaints Management ApplicationNEED DELIVERABLE APPLICATION RESULTUnderstanding of the Report able to measure “Able to provide furtherservice level provided by performance at information when issuing adistribution agents NewsAgent level and also default or warning to a by type of complaint newsagent”Ability to feedback tobusiness newsagent K. Norlyng -service level trends Subscribers Services ManagerUnderstand which agentsprovide a poor servicelevel Number of complaints dropped from 874 to 465 aUnderstand which agent week after the first sixprovide a poor service months of using thisacross certain activities, ie report. In ratio offailed stops deliveries, this is an improvement of 30.6%. 10
    • 11
    • “Self Service Reports Concept” Call Centre Application NEED DELIVERABLE APPLICATION RESULTSGain a great understanding Self Service Report called Training requirements forof subscriber activity Call Centre Activity Report staff V2.0 able to displayBetter understand patterns performance per agent all Performance Managementof consumer behaviour along the subscription of staffaround key time period transactions(school holidays, campaignlaunches) The report is flexible and K. Norlyng only require modify dates Subscriber ServicesAllows identification of key Managerareas of improvement fortargeted coaching of staff -ie: for excessive amounts ofperm stops; insufficientnotes recorded “Self service reports development save at least 10% of the data analyst’s time a week” 12
    • Call Centre Activity Report 13
    • Top tips developing SmartReports• Understand your customer (teams) needs and get the full picture of process and also decisions that are going to be made based on the report.• Learn about the data that is going to be used to develop and further populate the report• Preferably, develop your reports from a unified database, avoid spare data sources• Make the layout of the report simple to read. Include as many charts as possible as they give the reader better visibility of the trends of the report.• Have consistency all amongst your reporting package. This will allow you to compare same group of customers between different reporting scenarios (e.g. acquisition & retention)• Keep in mind who is going to be the user of the report. For senior managers, would better suit summaries and charts, for more operational areas, more details would be helpful.• Automate your reports. Use smartREPORTS and excel macros to help you.• Define the frequency to update the report and always refresh the info at the same time.• Communicate findings and help users to interpret the report. 14
    • Stage # 2: Data Management Data Customers DynamicSmartREPORTs Manage Profiling and Forecasting LTV Renewal Segmentation segmentation ment Feb 2011 15
    • Data Management with MaaX POA Subs DPIDs Propensity Model Score PersonicX External Segments Prospect Data *FairfaxCustomer MaaX Loyalty Campaigns DataWarehouse database Data*Internal business info source Third party databases “Visibility of transactional information transformed into business insights” M. Gasser - Marketing executive 16
    • Application Example 1 .Integration & administration of 2. Cross information between External external third party data into MaaX data and AGE Subscribers database DPID address Acxiom Prospects Active Subs Propensity Model – Prospects Data with score POA Address Acxiom Propensity Model - Bridge tables to Prospects Data with score integrate data PERSONICX 3. Segmentation and 4. Results Matrix Data Extract Offer 1 Offer 2 Offer 3 Offer 4Segment A A1 A2 A3 A4Segment B B1 B2 B3 B4Segment C C1 C2 C3 C4Segment D D1 D2 D3 D4Segment E D1 D2 D3 D4 17
    • Interpreting results “We’ll be able to measure different KPI’s per cell in order to make business decisions about what offer to send to each segment” TESTING MATRIX Example of results (%Conv Rate) Offer 1 Offer 2 Offer 3 Offer 4 Offer 1 Offer 2 Offer 3 Offer 4Segment A A1 A2 A3 A4 Segment A 1.5% 1.8% 2.0% 3.0% 2.1%Segment B B1 B2 B3 B4 Segment B 2.6% 2.6% 4.2% 3.6% 3.3%Segment C C1 C2 C3 C4 Segment C 3.2% 4.5% 1.8% 2.2% 2.9%Segment D D1 D2 D3 D4 Segment D 2.0% 2.0% 2.0% 2.0% 2.0% 2.3% 2.7% 2.5% 2.7% 2.6% KPI 1: Conversion Rate - Circulation focus Example of results ($sales) Example of results (ROI) Offer 1 Offer 2 Offer 3 Offer 4 Offer 1 Offer 2 Offer 3 Offer 4 Segment A $ 2,985 $ 3,132 $ 2,800 $ 3,450 $ 12,367 Segment A $ 3.33 $ 3.64 $ 3.78 $ 3.78 $ 3.63 Segment B $ 5,174 $ 4,524 $ 5,880 $ 4,140 $ 19,718 Segment B $ 6.70 $ 6.70 $ 11.67 $ 11.67 $ 9.18 Segment C $ 6,368 $ 7,830 $ 2,520 $ 2,530 $ 19,248 Segment C $ 3.64 $ 3.64 $ 3.78 $ 3.78 $ 3.71 Segment D $ 4,577 $ 6,264 $ 3,080 $ 2,990 $ 12,560 Segment D $ 3.64 $ 3.64 $ 3.78 $ 3.78 $ 3.71 $ 19,104 $ 21,750 $ 14,280 $ 13,110 $ 63,893 $ 4.33 $ 4.40 $ 5.75 $ 5.75 $ 5.06 KPI 2: $Sales: Revenue focus KPI 3: ROI: Yield focus 18
    • Business Benefits • Efficient data management, not only of subscribers but also from external sources of information. • Cross reference analysis of The Age subscribers with market information. • Improve efficiencies of operational activities such as datawash of current customers against prospects data by using DPID or lists generation. • Effective campaign measurement by using DPID. • Prepare data for multi-channel campaigns allowing testing metrics and segmentation 19
    • Top tips managing data with MaaX• “Touch and feel” your data. Understand what is available, when and in what format.• Identify the main stakeholders that interact with the database as well as how database works, how it get updated and enriched.• Keep your information clean and unified.• Define standard processes to migrate external data into MaaX; Coordinate the process with all the stakeholders. Define file layout, format, name conventions and share a written document with them.• Be aware of the data limitation and make your stakeholders aware of the possible slips through the cracks. (e.g 96% DPID appending, returns timeframes, payment starts 3 days rule)• For security reasons, always encrypt your files and use secure FTP (sftp) servers to transfer information. 20
    • Stage # 3: Customers Profiling & Segmentation Customers Profiling Dynamic Data SmartREPORTs Management and Forecasting LTV Renewal Segmentat segmentation ion 2011 21
    • Has the profile changed during the last years? What channel would better What do reach my our audience? customers Age customers looks like? profiling & segmentation How much customer s will pay? Differences between Print and Digital Subscribers ?“Periods of change in the business require quick insights and access to the information to make the right decisions” L. Edwards Acquisition Manager 22
    • How can MaaX segment our customers base? • Advance banding definitions to categorize subscribers into 3 main segments based on price and length of the offer as Core, Trial and Discounted. • As part of the new business strategy, we should be able to see a shifting from discounted customers base towards trial (in the short term) and Core (in the long term) • “With MaaX, the company keep a close eye on customers’ shifting across segments to ensure the effectiveness of the strategy in terms of profitability and marketing spend” 23
    • Customers life stage profile 100% 8% 9% 90% 10% 6% 16% 12% 80% 7% 10% 9% 5% Modest Means 7% 9% 10% 9% 6% Gen X Singles 70% 7% 9% 9% 10% 9% Cash & Careers 60% 9% 14% 13% 10% Boomer Barons 50% 13% 5% 17% Taking Hold 13% 8% 9% 40% Active Elders 21% 5% 30% 13% 14% Flush Families 18% 16% Golden Years 20% 6% 12% 11% 7% Mature Weath 10% 16% 19% 13% 14% 10% 0% CORE TRIAL DISCOUNTED EDUCATION TERTIARY• Over 60% of CORE subscribers are 55 – 65 years, live in affluent suburbs, highly educated, active, some still employed in white collar occupations. They read business / personal investment magazines and are highly engaged with the state of politics / economics locally and abroad. They enjoy finer things in life – premium sporting or cultural events, international travel, fine wines, food, the arts• TRIAL & DISCOUNT (36K) subscribers are slightly younger 30 – 40 years, highly educated, above average incomes, like to live well and are aspirational• EDUCATION (2K teachers) subscribers are similar in profile to CORE however they are still working hence the lower % in Golden Years and Active Elders. 24
    • Print and Digital customers profile (3,172 Digital Edition subscribers - $18 every 4 weeks) 16% 14% 12% 10% 8% 6% 4% 2% 0% %Digital Edition Subs %Print Subs• Print subscribers are more likely to be Golden Years and Mature Wealth than Digital ones• However, younger generations such as Boomer Barons, Gen X Singles and Taking Hold are potentially more interested in a digital subscription. They also look more like our TRIAL print subscribers• High incomes, in their 30s, white collar professions, enjoy “living well”, may have kids so more time poor 25
    • Loyalty Program engagement Loyalty Program Categories (Entry rate per customer)60,000 4.0150,00040,000 Total 1.92 entries30,000 2.69 1.9320,000 1.61 Unique 1.55 1.0010,000 1.74 customers 1.52 entries - Mature Wealth and Our Turn group of customers are more likely than other subscribers to participate in the Loyalty Program. Customers are more likely to entry cinema and theatre competitions with an entry rate of 4.01 and 2.69 entries per customer respectively Customers from these groups are mainly between 50 and 65 years old, with average and high income levels with interest in business magazines, gardening, sport events and international travel. 26
    • SmartREPORTs Data Customers Profiling and Forecas LTV Dynamic Renewal Management Segmentation ting segmentation Currently 27
    • Challenges• Channels isolation such as door knocking, education and tertiary. “As they behave differently, we should analyse them differently as well”.• Forecast break down by days of the week instead of average circulation.• Inclusion of Digital as in integral part of the circulation. – Bundle offers. Be careful to don’t double count them!• Daily trends on holiday suspensions based on customers base per day (e.g Monday 80K, Tuesday 50K customers. Therefore, different proportion should be applied).• Second and third round renewals counting as part of the future expires. 28
    • Forecast Model LayoutFORECAST MODEL DEVELOPMENT Current Paper Potential Expires (-) Based on expire date a week (x) By Segments Based on Historical Expires By Payment Term Renewal Rates Data By Serv Level Fcast Expires a (+) week By Segments Fcas Acquisition Based on Acquisition Acquisition By Payment Term a week Plan By Serv Level Gross Circulation (x) By Circ Per day Fcas Temp Stop Based on Historical Temp Stops Temp Stop trans rate per day Data Nett Circulation 29
    • Acquisition Reports• Identify trends in number of starts by categories and campaigns along all seasons of the year• Compare results against forecast and readjust based on initiatives for the coming year.• Keep in mind market trends and business strategy when defining acquisition volumes.• “What was relevant two years ago, it’s probably different now” 30
    • Retention Reports • Clear visibility of attrition rates per group of customers • Isolate groups with untypical behaviour within the group and measure them separately (e.g Door knocking, direct debits) • Apply renewal rates to potential expires customers based on: – Subscription expire date – Acquisition plan expires • Include in your retention plan 2nd and 3rd round renewals. 31
    • Suspensions Report Track suspensions on a day-to-day basis to ensure accurate behavioural trends along seasonality when developing forecast. When calculating suspensions rates, be aware of the size of the customers base per day, as this change every day as a result of the delivery offers (7 day – 4 day deliveries) e.g. Tuesday 80K deliverable customers but Saturday 115K. 32
    • Forecast – final result 33
    • Our challenges moving forward with MaaX • As an integral part of the acquisition strategy, we urgently need to define the lifetime value of our customers in order to decide how we better spend marketing budgets and ensure the right offers to the right markets through the right channels. • Thus, LTV analysis by using MaaX is one of the top priorities for the next month. 34
    • Our challenges moving forward with MaaX • Renewal Segmentation is also on the priority list. • At the moment, renewal process is rigid and does not allow any sort of personalization. Thus, the current system is only able to select a set of renewal offers based on the current offer that the customer is on. • The idea moving forward with MaaX is to create a dynamic segmentation environment where renewal offers are customized based on demographic, geographic and transactional customer’s information 35
    • The dynamic business strategy at The AGEFelipe RinconCRM AnalystPh (+61) 3 8667 2731frincon@theage.com.auwww.theage.com.au
    • The AGE newspaper (owned by Fairfax Media Group)Digital Access- Age Digital Edition– Digital replica edition of The AGE print newspaper (July 2010)- Age iPhone App – Digital edition of The AGE on iPhone (September 2010)- Age iPad App – Digital edition of The AGE on iPad (May 2011)Print- Weekday print sales: 184,156 down from 195,900 (-5.99%) Print circulation- Saturday print sales: 263,047 down from 281,500 (-6.56%) decline by 5.49% during the last- Sunday print sales: 222,291 down from 231,000 (-3.77%) yearDigital- 1,706,000 monthly unique web visitors up from 1,688,667 in 2011 (+1.07%)- 3,973,637 video streams up from 3,453,656 in 2011 (+15%) Digital audience- 79,878 average daily unique mobile browsers up from 43,244 (+85%) increased by- 61,705 app downloads up from 6,955 in 2011 (+781%) 12.2% during the last yearFairfax Metro Media Audience Report Oct-Dec 2011 (Feb 10, 2012) 37
    • Newspaper Audience “On the Go”In a quickly changing environment, audience understanding is more critical thanever.Fairfax closely monitors audience patterns and habits to createproducts and options that will cater to audience needs. 38
    • Analytics supportingthe business challenge Marketing planning and forecasting Subscribers Reporting Acquisition CRM team -MaaX- Loyalty and Data Customers Management Retention Subscriber Services 39
    • Issues along the process• Daily updates with CDW. Lag in days• Data information coming is sometimes incorrect• Database enrichment is poor• Lag in standards from sources coming to feed MaaX. 40
    • Loyalty Program Overview• 165,128 Entries during 14 months -> 11,795 entries per month (avg).• 85 Competitions during 14 months -> 6 competitions per month (avg)• 1,943 entries per competition (avg)• 24,852 unique customers participating -> 6.7 competition entries per customer (avg) & 19% of the active base.